“The use of whitelists, which prevent financial institutions who are not listed from acquiring the debt, damages market liquidity and often results in a sponsor-friendly restructuring instead of one that is in the best interests of the company.”
Our Founder and Managing Partner, Natasha Harrison, is quoted by The Financial Times on the battle between hedge funds and private equity firms acquiring distressed companies and the use of “whitelists”.
Hedge funds are challenging private equity firms over restrictions that dictate who can lend to or buy the debt of buyout-backed companies, weighing legal action to capitalise on a surge in corporate distress.
